Home » Structure and document a property development

Structure and document a property development

We prepare the disclosure, the contracts and the development agreements so your project can go to market.

A development is realised at settlement, not at completion. Before a single lot can be sold, the disclosure has to be right. The contracts have to deal with a title that may not exist yet. And the arrangement between the parties funding it has to be documented. We prepare that documentation from the planning stage through to the last lot settling.

Speak to a lawyer What is included

Disclosure right across the release

The disclosure is prepared once and correctly, so a single defect cannot give every purchaser a right to rescind.

Contracts built for the off-the-plan period

Delay, permitted variation and the sunset date are dealt with before exchange, not argued about at registration.

The parties' agreement documented

Contributions, control and profit split are clear, so a disagreement between the parties cannot stall the project.

What has to be in place before a lot can be sold

Selling lots out of a development involves three distinct pieces of documentation. A delay in any one of them stops the project earning.

The first is disclosure. A vendor has to give purchasers prescribed information about the land. Off-the-plan sales usually carry extra disclosure about the lot that does not yet exist. Each state sets its own requirements. Get the disclosure wrong on a development and the defect repeats across every contract in the release.

The second is the contract of sale. Where the title does not yet exist, the contract has to handle the off-the-plan period. What variation to the lot is permitted, what happens if registration is delayed, and the sunset date at which either party can walk.

The third is the arrangement between the people doing the development. Landowner and developer, joint venturers, or a financier with a stake in the proceeds. That agreement decides who contributes what, who decides what, and how the profit is split.

Speak to a lawyer

When do I need the contracts ready?

Before marketing begins, not when the first purchaser wants to sign. Vendor disclosure has deadlines tied to signing and settlement, and off-the-plan sales often carry extra disclosure requirements. We work backwards from your campaign date so documentation never holds up sales.

What is a sunset date and how should I set it?

It is the date by which the title has to be registered, after which a party can usually terminate. Set it too tight and purchasers can walk when the program slips. Set it too loose and purchasers may not commit. We set it against your realistic program rather than your optimistic one, and draft the extension mechanics.

What if the lot as built differs from the plan?

That depends entirely on the variation provisions in your contract. Without them, a purchaser may be able to refuse to settle over a difference in area or layout that was always likely. We draft permitted variation tolerances so ordinary construction outcomes do not give purchasers an exit.

Do I need a development agreement if I am working with the landowner?

Yes, and it is worth doing before anything is spent. The agreement sets out who contributes what and who makes decisions. It also sets out how the profit is split and what happens if the project stalls or a party wants out. Arrangements built on an understanding between the parties are the ones that stop projects when conditions change.

The documents have to be right before marketing, not after the first dispute

Correct disclosure, contracts and development agreements at the outset avoid the rescissions, delays and claims that follow inadequate documentation. The cost of preparing them properly is a fraction of resolving one dispute with a purchaser.

A development that goes to market before the documents are right is not ready to go to market

The project is progressing and you need contracts so sales can start. Momentum matters, and legal documentation is usually the thing that gets left until it is urgent.

But the disclosure obligations, the off-the-plan provisions and the development agreement all have to be right before marketing begins. A defect discovered afterwards can unwind sales across a whole release. And it surfaces at the worst possible time, when purchasers are looking for a reason to get out.

We will advise on the disclosure obligations for your development and prepare the disclosure documents.
We will prepare contracts of sale for the lots, including off-the-plan provisions where the title is not yet created.
We will prepare or review the development agreement and advise on how risk is allocated.
We will settle the individual lots as titles are created and advise through the subdivision process.

You want lots selling, without a documentation defect unwinding the release

The development is underway and the marketing campaign has a date. Contracts need to be ready so purchasers can be signed up.

But the disclosure has to be right, and the contract has to handle a title that does not exist yet. If the market softens before registration, purchasers will read their contracts closely looking for an exit. A defect that nobody noticed at exchange becomes the reason a release unwinds. You want the documentation prepared properly so the project reaches settlement on your terms.

What's included in your development documentation service

Speak to a lawyer

Vendor disclosure preparation and advice for the development.
Contracts of sale for individual lots, including off-the-plan provisions.
Development agreement preparation and negotiation.
Subdivision coordination and lot settlement management.
Advice on variations, delays and purchaser queries after exchange.

What goes wrong when the documentation is rushed

Defective disclosure is the worst of them, because it repeats. Disclosure that misses a matter is not one bad contract, it is every contract in the release. Purchasers who have gone cold get a right to rescind, and you lose the sales funding the next stage.

Off-the-plan contracts are the second. The contract has to deal properly with delay, with permitted variation to the lot, and with the sunset date. If it does not, you face disputes with purchasers at the point where you most need settlements to happen.

Development agreements are the quietest and the most damaging. Vague terms about contributions, decision-making and profit distribution do not cause problems while the project is going well. They surface when it is not, and they can stall a development entirely.

How we get the project to a position where it can sell

We work out the disclosure obligations for this development and prepare the disclosure documents before any contract is offered. Getting it right once fixes it for the whole release.

We prepare contracts of sale built for the off-the-plan period. Permitted variation, what happens if registration slips, and a sunset date that is realistic for the program rather than optimistic.

We prepare or review the development agreement so contributions, control and profit are allocated clearly between the parties. Then we settle the lots as titles are created and deal with the purchaser queries and variations that come up along the way.

Three steps to a development that can go to market

Disclosure prepared, contracts drafted, project ready to sell.

Prepare disclosure

We advise on the disclosure obligations for the development and prepare the disclosure documents before marketing begins.

Draft the contracts

We prepare contracts of sale with off-the-plan provisions, and the development agreement between the parties.

Settle the lots

We settle individual lots as titles are created and handle variations, delays and purchaser queries through to completion.

Development documentation, from disclosure through to the last settlement

Developers spend their attention on planning, construction and finance, because those are the parts that can obviously stop a project. The documentation gets picked up late, under time pressure, which is exactly when defects get into it. We would rather be involved before the campaign has a date.

We prepare vendor disclosure for developments, contracts of sale with off-the-plan provisions, and development agreements between landowners, developers and financiers. We also settle the individual lots as titles are created, which is where the documentation either works or does not. We are an ISO 9001 accredited practice. How your matter is run, who does the work and what you get told are all defined and externally audited.

Our great lawyer guarantee

Six principles we hold to, whatever you bring us and however long it takes.

Take the time

We listen carefully to understand what you want to achieve, then step you through the advice and the documents.

Share our knowledge

We pass on as much as we can, so you can make your own informed decisions.

Stick to our knitting

We only do what we are good at, so you never pay for our learning.

Work as one team

Someone is always available to answer your question or point you the right way.

Fair pricing

A fixed or capped quote for advice and documents, so you do not carry the price risk.

It is your show

We are in it for a front row seat to witness your success, not for our egos.

Ready to get your development documented

The documentation is the part of a development that is cheapest to get right and most expensive to get wrong. A defect repeats across every contract in the release. Tell us about the project and where it is up to. We will set out what has to be in place before you can sell.

Speak to a lawyer 1300 654 590